Samsung - Bigger Than You Know

Summary

This video script delves into the expansive empire of Samsung, a conglomerate far beyond smartphones. It reveals Samsung's significant contribution to South Korea's GDP and its diverse ventures, from electronics to shipbuilding, insurance, and even aerospace. The script challenges the perception of Samsung as merely a smartphone manufacturer, showcasing its historical roots, government support, and its role in various industries, including construction of the world's tallest buildings and life insurance, emphasizing the company's unexpected breadth and depth.

Takeaways

• 📱 Samsung is widely known for its smartphones, especially the Samsung Galaxy series, which has sold hundreds of millions of units annually.
• 🏆 Despite briefly losing the top spot in mid-2020, Samsung quickly regained its position as the world's leading smartphone manufacturer.
• 🌐 Samsung Electronics is a part of the larger Samsung Group and has been ranked by Fortune as one of the largest companies globally, contributing significantly to South Korea's GDP.
• 💰 The company's annual sales are around 200 billion dollars, accounting for about an eighth of South Korea's GDP, highlighting its economic influence.
• 📈 Samsung's history dates back to 1938, starting as a dry goods store and expanding into various industries before entering electronics in 1969.
• 🔄 The term 'chaebol' describes Samsung's business model as a family-controlled industrial conglomerate, which has been instrumental in its rapid growth.
• 🛠️ Samsung Electronics comprises four divisions: consumer electronics, IT and mobile communications, device solutions, and Harman, which focuses on connected car systems.
• 🏭 Samsung Heavy Industries, established in 1974, specializes in shipbuilding and has constructed over 1200 vessels, including massive drill ships and cruise liners.
• 🏥 The Samsung Foundation operates the Samsung Medical Center, a hospital in Seoul, showcasing the company's involvement in healthcare.
• 🏢 Samsung Construction and Trading is involved in major construction projects, including the world's tallest buildings, bridges, tunnels, and infrastructure.
• 🚗 Samsung's diverse business ventures also include insurance, with Samsung Life Insurance being a significant player, ranking among Fortune's list of the world's 500 largest companies.

Q & A

What is the primary product that comes to most people's minds when they think of Samsung?

Most people instantly think of Samsung's smartphones, specifically the Samsung Galaxy series, when they hear the name Samsung.

What was Samsung's position in terms of smartphone sales in 2020?

Samsung briefly lost the number one spot in smartphone sales in the middle of 2020 but regained it the following quarter.

How does Samsung's annual sales compare to South Korea's GDP?

Samsung's annual sales are around 200 billion dollars, which is about an eighth of South Korea's GDP of 1.6 trillion dollars.

What is the significance of the name 'Samsung' and its origin?

The name 'Samsung' is Korean for 'three stars', which was also featured on their logos until the 1990s, symbolizing the predicted longevity of the business.

What was Samsung's initial business model before it ventured into electronics?

Samsung initially operated as a dry goods store and also traded groceries internationally, buying from local producers and selling to China.

What was the first product Samsung Electronics released in the 1970s?

Samsung Electronics released a black and white television as their first product in the early 1970s.

What is the term 'chaebol' and how does it relate to Samsung?

Chaebol is a Korean term for a family-controlled industrial conglomerate. Samsung is the largest chaebol in South Korea and has significantly contributed to the country's economy.

How did the Korean government's policies post-Korean War influence Samsung's growth?

The Korean government provided Samsung with favorable loans, tax breaks, and limited competition, which helped the company to grow and invest in various industries.

What are the four main divisions of Samsung Electronics?

The four main divisions of Samsung Electronics are Consumer Electronics, Information Technology and Mobile Communications, Device Solutions, and HARMAN.

What is Samsung Heavy Industries known for producing?

Samsung Heavy Industries is known for producing ships, including massive drill ships, carriers, tankers, and even cruise ships.

Which notable structures has Samsung Construction and Trading been involved in building?

Samsung Construction and Trading has been involved in building the tallest buildings in the world, bridges, tunnels, roads, power plants, and skyscrapers.

What is the role of the Samsung Foundation and its connection to healthcare?

The Samsung Foundation operates the Samsung Medical Center, a hospital in Seoul, South Korea, showcasing the company's involvement in the healthcare sector.

What was the significance of Samsung Aerospace in the 1980s?

Samsung Aerospace manufactured jet engines, helicopters, and even fighter jets and tanks for the Korean military, as well as parts for the world's largest airplane manufacturer, Boeing.

How significant is Samsung Life Insurance in terms of revenue and global ranking?

Samsung Life Insurance alone makes almost 30 billion dollars a year and consistently ranks on Fortune's list of the world's 500 largest companies.

Outlines

00:00

🌟 Samsung's Economic Dominance and Diversified Industries

The video script introduces Samsung as a company much larger than commonly perceived, often associated with smartphones like the Galaxy series. It highlights Samsung Electronics' consistent ranking among the world's largest companies by Fortune, with annual sales around 200 billion dollars. This South Korean company contributes significantly to the country's GDP, with its electronics division alone accounting for an eighth of it. The script also mentions the broader Samsung Group, which has an even more substantial impact on Korea's economy. The company's history dates back to 1938, initially as a dry goods store, and expanded into various industries, including commodities, textiles, insurance, and more, before establishing Samsung Electronics in 1969. The script discusses the role of the South Korean government in supporting Samsung's growth through favorable loans and tax breaks, which helped the company become a global leader in electronics and other industries.

05:00

🛠️ Samsung's Diverse Business Divisions and Global Impact

This paragraph delves into the various business divisions of Samsung Electronics, starting with consumer electronics, where Samsung has been the world's largest TV maker for over a decade. It also covers information technology and mobile communications, device solutions involving memory and displays, and the acquisition of Harman for connected car systems. The script then broadens to include other parts of the Samsung Group, such as Samsung Heavy Industries, known for shipbuilding, and the Samsung Foundation, which operates a hospital. Samsung's involvement in construction and trading, including building the world's tallest buildings, is also highlighted, along with its past ventures in aerospace and military vehicles. The paragraph concludes with Samsung Life Insurance, a significant player in the insurance industry. The script emphasizes the breadth and depth of Samsung's business operations, which extend far beyond consumer electronics and have a profound impact on various sectors globally.

10:00

📢 Engaging Audience Reflections on Samsung's Extensive Reach

The final paragraph invites audience engagement by reflecting on the surprising extent of Samsung's business operations. It encourages viewers to share their thoughts on Samsung's size and the Korean economy's reliance on the company. The script poses a question to the audience, asking if the presented information has changed their perception of Samsung and invites them to comment on the most surprising aspect of the company's diverse ventures. The call to action is aimed at sparking discussion and further exploration of Samsung's influence and the implications of its size.

Keywords

💡Samsung

Samsung is a South Korean multinational conglomerate known for its diverse range of products and services. In the video, it is emphasized that Samsung is much more than just a smartphone manufacturer, with a significant impact on South Korea's economy, accounting for up to 20% of the country's GDP. The term 'Samsung' is used throughout the script to illustrate the company's vast business interests and history.

💡Samsung Galaxy

The Samsung Galaxy is a series of mobile devices designed, manufactured, and marketed by Samsung Electronics. It is a flagship product line that includes smartphones, tablets, and smartwatches. The video script mentions the Samsung Galaxy to highlight the company's dominance in the smartphone market, even though the challenge is to discuss Samsung without mentioning smartphones.

💡Fortune Global 500

The Fortune Global 500 is an annual ranking of the top 500 corporations worldwide as measured by revenue. In the script, Samsung Electronics is mentioned as consistently being ranked by Fortune as one of the largest companies in the world, emphasizing its economic significance globally.

💡GDP (Gross Domestic Product)

GDP is the monetary value of all finished goods and services made within a country during a specific period. The script uses GDP to illustrate the economic impact of Samsung, stating that one company accounts for about an eighth of South Korea's GDP, showcasing the company's size relative to the national economy.

💡Samsung Group

Samsung Group is a South Korean conglomerate comprising numerous international businesses. The script explains that Samsung Electronics is just one part of the larger Samsung Group, which collectively contributes significantly to Korea's GDP, highlighting the conglomerate's extensive reach and influence.

💡Chaebol

Chaebol is a term used in South Korea to describe large family-controlled industrial conglomerates. The script uses 'chaebol' to define Samsung's business structure, explaining how the company's growth was facilitated by the South Korean government's post-war economic policies, which favored the expansion of large businesses.

💡Samsung Electronics

Samsung Electronics is a subsidiary of Samsung Group and specializes in consumer electronics, information technology, and mobile communications. The script details the company's various divisions, emphasizing its role as the core business of the Samsung Group and its contribution to the global electronics market.

💡Samsung Heavy Industries

Samsung Heavy Industries is a part of the Samsung Group that specializes in shipbuilding, including the construction of various types of vessels such as carriers, tankers, and cruise ships. The script mentions this division to illustrate the diversity of Samsung's business interests beyond electronics.

💡Samsung Medical Center

The Samsung Medical Center is a hospital in Seoul, South Korea, operated by the non-profit Samsung Foundation. The script uses this example to show the company's involvement in the healthcare sector, which is unexpected for many viewers.

💡Samsung C&T Corporation

Samsung C&T Corporation is a construction and trading company within the Samsung Group. The script highlights the company's role in building infrastructure and skyscrapers around the world, including the tallest building in the world at the time of the script's recording.

💡Samsung Life Insurance

Samsung Life Insurance is a subsidiary of Samsung Group that provides life and health insurance services. The script mentions this company to show the breadth of Samsung's business interests, including the financial sector, and its consistent ranking among the world's largest companies.

Highlights

Samsung's size is often underestimated, with its electronics division alone contributing significantly to South Korea's GDP.

Samsung Electronics consistently ranks among the largest companies globally, with annual sales around 200 billion dollars.

The company's impact on South Korea's economy is immense, with its electronics division accounting for an eighth of the country's GDP.

Samsung Group's overall contribution to Korea's GDP is as high as 20%, indicating an unusual reliance on a single company.

The company's origins date back to 1938, initially operating as a dry goods store and grocery trader.

Samsung's name and early logo featured three stars, symbolizing the company's intended longevity.

The company expanded into various industries post-Korean War, including commodities, textiles, and insurance.

Samsung Electronics was established in 1969, and by the end of the 1970s, became the world's top producer of black and white TVs.

The concept of 'chebul' or family-controlled industrial conglomerates played a key role in Samsung's rapid growth.

Government intervention and support were crucial in Samsung's expansion, including favorable loans and tax breaks.

Samsung Electronics comprises four divisions: Consumer Electronics, IT & Mobile Communications, Device Solutions, and Harman.

Samsung Heavy Industries, established in 1974, has built over 1200 ships, including massive drill ships and carriers.

The Samsung Foundation operates the Samsung Medical Center, a hospital in Seoul, showcasing the company's reach beyond electronics.

Samsung Construction and Trading is a major player in global infrastructure, having built the world's tallest building in 2010.

Samsung Aerospace, though defunct, once manufactured military vehicles such as fighter jets and tanks.

Samsung Life Insurance is a major player in the insurance industry, ranking among the world's largest companies.

The breadth of Samsung's business ventures is staggering, ranging from groceries to military vehicles.

The video challenges the perception of Samsung as merely a smartphone manufacturer, revealing its diverse and extensive business operations.

Transcripts

[Music]

i'm gonna go ahead and guess that

samsung is much larger than most people

realize

when i hear that name i instantly think

of cell phones specifically

the samsung galaxy it's probably the

case for most people watching this i'm

sure many of you

actually own one of them right now you

may be looking at a picture of a samsung

galaxy

on your samsung galaxy alright i'm

complicating this but they've been

selling hundreds of millions of them

every year more than

any other company it appears that they

did lose that number one spot in the

middle of 2020 but then quickly regained

it right back the next quarter

so here's my challenge for the day to

help prove that samsung is bigger than

you know

i'm going to talk about samsung for the

next 10 minutes or so

without even mentioning the thing for

which they are most

known simply put that was the last time

in this video you will hear the word

smartphone alright samsung electronics

has consistently been ranked by fortune

as one of the largest companies in the

world

their sales have been around 200 billion

dollars each year which

sounds crazy when i say it they're from

south korea and for the entire country

their gdp is something like 1.6 trillion

meaning this one company accounts for an

eighth of that

and as if that wasn't crazy enough

samsung electronics

is only one part of the much bigger

samsung

group when you combine it all together

they've been responsible for as much as

20

of korea's gdp let me know if there is

one but i'm not aware of any other

country where their economy is so

reliant on one company

so let's talk about everything that's

going on here samsung goes all the way

back to

1938 and actually existed for over 30

years before it had anything to do with

electronics it was started by

lieb young chill when he was 28 years

old their initial logo featured three

stars because stars were meant to last a

long time and it was meant to be

symbolic of the predicted longevity of

the business

the name samsung is actually korean for

three stars that were featured on all

their logos up until the 1990s

that initial business actually operated

as a dry goods store that would also

trade groceries

internationally he would buy noodles and

fish and vegetables from the growers and

producers around the area and sell them

to china it all proved to be successful

the korean war made things more

difficult but when it ended in 1953 he

took advantage of the opportunity

and expanded into all of these other

industries first it was commodities when

he built a sugar refinery that happened

to be the first of its kind that was

built in the country after the war

following that was textiles when he

opened the largest woolen mill in the

country

after that it was insurance a tv station

a department store

for these first 30 years they seemed to

be involved in everything

except electronics i mean they were

already generating over 100

million dollars in annual revenue before

what became samsung electronics company

even

existed in 1969 it was created as one of

the many parts of their business in the

early 1970s they put out this black and

white television as their first product

and by the end of the decade

they were the world's number one

producer of them i know everything's

happening so fast

and to try to explain how samsung became

so successful

so fast i think the best explanation

would be che

bulls that is a korean word that is

defined as a

family controlled industrial

conglomerate in south korea

samsung fits that definition perfectly

because they are the biggest one

see following the korean war the

country's economy was in some trouble

they weren't producing much and they

definitely weren't

exporting much then in 1963 there was

this new president

named park chung-hee who was very set on

expanding this economy

his main method of doing it was to try

to centralize everything i'm

oversimplifying it but he essentially

wanted to take the bigger businesses and

help make them bigger the idea is simple

enough if the companies grow so does

their economy

now samsung already being one of these

larger businesses

was tremendously helped by this

intervention the korean government would

help samsung they would be providing

them loans under favorable terms giving

them special tax breaks just a lot of

things that would ensure that they would

have money to keep investing and growing

their business

they would even go so far as to limit

their competition for example in the

1970s they said japan

can no longer sell consumer electronics

in korea

obviously taking those alternatives off

the market pushed the consumers towards

samsung

later in that decade when they started

making semiconductors the korean

government said that they would only

allow

international companies to enter their

market if they handed over some of their

technology secrets to samsung

to me anyway this is not exactly the

inspirational story that we typically

see on this channel but we can't deny

that the methods were successful in

growing samsung and the korean economy

in general but it may not have been the

best way to do it

like i said the country is now very

reliant on one company if stuff started

to go bad over at samsung i'd hate to

see what would happen to the rest of the

country

also if you're looking to start a small

business i do not recommend korea

the laws are obviously not in your favor

given that they've had such an unusual

yet strong push forward it makes sense

that they would have grown into one of

the largest companies in the world

so i want to show exactly how big they

are by taking a look at some of their

bigger

more impressive parts samsung

electronics is the core of their

business and

it consists of four separate divisions

the first one there is consumer

electronics they make televisions

monitors refrigerators

air conditioners any stuff that you have

in your home that you bought from

samsung

probably falls under this segment

they've actually been the world's

largest maker of televisions for over a

decade now so if you own a tv

there's a one in five chance that it

came from samsung

the next segment would be information

technology and mobile communications

which is most known for their laptops

and

something else that i promise not to

mention the third segment

is device solutions which has to do with

memory and displays

actually samsung has made quite a few of

the displays and chips that have gone

into iphones over the years so

there you go even if you buy an iphone

samsung is making money from it

the final division under samsung

electronics is harman it's a company

that they bought in 2017 for eight

billion dollars that deals mostly with

connected car systems and things like

that it was actually their biggest ever

acquisition which

really means something when it comes to

samsung alright that covers the

electronics but there are still some

major things that i've yet to mention

samsung heavy industries they started

shortly after the electronics in 1974

and believe it or not

specialize in making ships over the last

almost 50 years they've built over 1200

of them i'm talking about

massive drill ships carriers tankers

even cruise ships

on top of that they also make these big

cranes and they used to make

forklifts given that the average person

is not buying ships or really even

encountering them too often

this is probably a part of samsung that

you didn't know about

and i have more how about the samsung

foundation

this is a non-profit portion of the

company that owns and operates a

hospital

in seoul south korea called samsung

medical center

i'm just guessing that most people are

unaware that there is a samsung

medical center that just sounds strange

to me i guess to go along with that i

should also mention that samsung is also

closely tied to a university in korea as

far as major funding and sponsorships

another big one would be samsung

construction and trading

this right here to me anyway it may be

the most unexpected part

it's mainly a construction company that

makes buildings and infrastructure they

felt make some sizable

bridges tunnels roads power plants all

around the world

they even build skyscrapers it's in a

big way too

after i say this you're probably going

to want to leave and double check it but

believe me when i say it the tallest

building in the world

was actually built by samsung that was

in 2010 and to go even a step further

the building that it passed the one that

was the tallest building before that

was also built in part by samsung i'll

admit that this one is hard to follow

but

there is still more this one no longer

exists but it's definitely worth

mentioning

samsung aerospace in the 1980s they

manufactured jet engines and helicopters

and later went on to make fighter jets

and tanks for the korean military

they also had major deals in place to

supply parts to the world's largest

airplane manufacturer which

of course was boeing considering samsung

aerospace has not existed since the

1990s i won't say too much more about it

i just thought that you should know

samsung did in fact produce military

vehicles

okay the final thing i want to highlight

is samsung life insurance do you

remember when i said they started

providing insurance in the 1950s well

that has since evolved into samsung life

insurance as the name implies they

provide

life and health insurance but again it's

in a big way

this company alone samsung life

insurance without all the other stuff i

mentioned

makes almost 30 billion dollars a year

and because of that

it consistently ranks on fortune's list

of the world's 500

largest companies you know i think it'll

really drive this home if i summarize

all of this

by listing out all the things that i've

mentioned in this video that samsung

either currently provides or has

provided in the past

to make it fun i'm going to try to do it

in one breath so

here we go groceries sugar textiles

insurance a tv station a department

store television semiconductors monitors

refrigerators

air conditioners laptops cpu chips

displays connected car systems ships

cranes forklifts and medical center

university bridges tunnels roads power

plants skyscrapers helicopters jets and

tanks and you know the other thing that

took four tries by the way

and all of that is just the stuff that

i've selected that i felt would be more

significant or

unexpected there's also things like

washing machines they used to make

commercial vehicles they own a theme

park they have a multi-billion dollar

i.t

company it's too overwhelming do you

know how big a company has to be

to where all of this stuff doesn't even

make the main list i'm out of breath

i'm just gonna end it here let me know

in the comments have i proven my point

is samsung bigger than you thought it

was because i refuse to believe that the

average consumer realizes the extent of

this company

and i'd be curious to know what part of

all this did you find to be the most

surprising

and like i said this is far from

everything so if you happen to know

about anything else that we might find

interesting

please let us know and any other

thoughts you have about samsung their

ridiculous size or

even the korean economy leave them in

the comments i'd like to hear what you

have to say

thank you for watching